Goldman Sachs Nontraded BDC Fills Q3 Tender as Requests Ease to About 2%

Goldman Sachs Private Credit Corp., a nontraded business development company, accepted all 7.6 million shares tendered in its third-quarter repurchase offer. The offer sought up to about 18.7 million shares, or 5% of shares outstanding as of June 30, so requests equaled about 41% of the cap, or about 2% of shares outstanding, according to AltsWire calculations.

The tendered shares were worth about $186.4 million at the Sept. 30 net asset value of $24.51 per share, and the fund paid about $186.3 million on or about Oct. 30, net of the 2% early repurchase deduction where applicable. In the second quarter, the fund fulfilled its tender as requests eased to 3.24% of shares.

Net assets rose to $9.44 billion as of Sept. 30 from $9.19 billion as of June 30. The increase ran against the broader nontraded BDC market, where redemptions outpaced new capital by $4.1 billion in the third quarter, according to preliminary data from Robert A. Stanger & Co., and net assets fell at Apollo Debt Solutions BDC, Blue Owl Credit Income Corp., and Ares Strategic Income Fund.

The Goldman Sachs fund sold about $400.1 million of shares across its three share classes during the quarter, down from $988.7 million a year earlier, and repurchased $185.6 million, net of early repurchase deductions. Class I shares accounted for all but about $2.9 million of sales and all of the repurchases.

NAV per share slipped to $24.51 as of Sept. 30 from $24.57 as of June 30. Class I shares returned 2% for the three months, 4.9% year to date, and 7.1% for the trailing year. Class S shares returned 1.8% for the quarter and 3.8% since their Feb. 1 launch, and Class D shares returned 2% for the quarter and 4.4% since their March 1 launch. The annualized distribution yield in September was 9.1% for Class I shares, 8.8% for Class D shares, and 8.2% for Class S shares. Net investment income was $216.7 million, compared with $218.9 million in the second quarter.

Leverage was 0.9 times in September, the company said, measured as average daily borrowings divided by average net assets for the month. Two portfolio companies were on nonaccrual status as of Sept. 30, representing 0.2% of the portfolio at amortized cost and 0.1% at fair value, compared with one company as of June 30. The fund does not report payment-in-kind income as a share of investment income, but it capitalized $38.9 million of PIK interest in the first nine months of the year, compared with $21.8 million a year earlier.

Since beginning investment operations in April 2023, the fund has originated about $22.78 billion of private credit investments and related equity. Co-chief executive officer Vivek Bantwal is set to become sole chief executive when fellow co-chief executive officer David Miller’s resignation takes effect Dec. 31.

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